Systematic cost reduction strategies eventually leads to increased revenue. You will have to incorporate this strategy in your processes during the start of a program, which is often referred to as value engineering and also after and during the implementation of a program commonly referred to as value analysis.
The revenue generated is from the incremental cost reduction gains realized from the ideas generation efforts. Much is also realized when the institution applies next level project management processes to the projects that arise from the ideas generation exercise.
Most of the time these ideas are embeded in the system, service or product and they only come to surface when you put in an unbiased evaluation process where every idea counts until the process itself deem them a high or low priority.
What Are The Important Key Elements?
In this case, higher priority plus reasonable implementation time are important key elements. When implemented successfully additional revenue from value analysis is inevitable.
Financial gains mitigates losses and often times translates into increases in the company’s financial bottomline.